our guest is barry knapp. you have about ten seconds. what do you think. next year will be a good year for the economy but not as good for the markets. >> thanks for being here. it has been a pleasure. >> make sure you join us tomorrow. "squawk on the street" begins right now. good monday morning. welcome to "squawk on the street." i'm carl quintanilla with jim cramer live at the new york stock exchange. david faber is off. given this news out of walmart, we are going to get him on the phone. company veteran, dug mcmillon will succeed steve duke. you were just talking with andrew about why you would do this days before the holiday

season would start and why mike duke is leaving years before expected. >> he hasn't been there but since 2009. his predecessor, lee scott, 2000 to 2009. it seems like a shortened period. also, as someone who follows retail closely, this is not the time to change horses, so to speak. at the same time, i am sure this company will, without a doubt, say it is seamless. i want to hear from david, that there is nothing pertinent that would make it so this seems wrong. i don't think it is right. >> david, you do know mcmillon well. what can you tell us? >> i spent a good amount of time doing our last document on walmart, which has to be about five years ago. then, there was a lot of speculation he would be the next ceo. i remember distinctly discussing it with him. it did make air on the documentary, that idea.

he was running international. we spent a couple of days together in china. certainly, well-schooled in international, had run, i believe, cosco prior tco, prior. >> you mean sam's club? >> sam's club, excuse me. >> i know you are on vacation. i have to keep you in line. >> one day of opening boxes. sam's club's, thank you, carl. again, he has been discussed as a ceo even back then, even though he was in his early 40s at the time. i believe now 47. still, clearly a lot of runway ahead of him. somebody who would do a move anywhere for the company and do what was asked of him. we had a fairly frank discussion about that. certainly, somebody who was like a lot of walmart executives, quite guarded in their commentary for the most part, sticking to the script. not a surprise to those that follow the company closely that he would be the successor to mr. duke.

timingwise, i don't have a lot to offer as to why not. >> david, the succession from lee scott 2000, 2009, to mike duke, was this just one of those moments where we didn't realize that mike duke may have been more of a caretaker than we thought? >> i don't know. i think that's a good question, jim. i just don't know. i don't think that's the case. there hasn't been a great deal of momentum but there have been a lot of challenges effectively one could argue during the tenure of mr. duke. a lot of positive things the company undertook in terms of trying to turn public opinion more in its favor. we don't see to have quite the depth of debate that we used to about whether walmart is really the worst. i know there are elements out there in the unions that would argue that. they have done a decent job of turning that in their favor. >> will we really know from an

organization that is as cryptic as walmart whether this was a surprise. >> no. we really won't. i remember even at the time that lee scott stepped down, as you say, he had been ceo for some time. you still wonder why now. as opposed to perhaps waiting. they are not old men. they are guys who are still relatively young. that said, jim, what's interesting to hear about mc mcmillon. >> 47, yeah. >> one has to believe he may be in the job for quite some time. perhaps a long period. david glass took over from the founder, himself, sam walton. >> the company, of course, david, as you know, says it has nothing to do with the ongoing allegations regarding the foreign corrupt practices act. your point is well taken. the pr pressure duke has had to deal with probably would have

broken a lessor executive a long time ago. >> that "new york times" investigation marked the bottom in the stock. it has been straight up ever since. does that mean when you look at the stock price and the stock takes off, that it really was not -- that it was more more impactful than any other foreign corruption practices investigation we have ever seen with the company? >> yes. you and i have talked about it, the three of us, so often, the perfect buying point. it isn't gone yet. they are still dealing with it. there would be ramifications from that. it is something that is going to be handed with mr. mcmillon. >> can you do the rest of the hour on the phone? do you mind? >> sure, guys. i only have about 80 boxes to go. i'm making progress. >> did you go to the container store. that stock has been red hot. >> i am going to visit later. once i have everything out, i can start to think about that.

>> williamson know sun knooma store needs your business. >> our david faber on the phone. walmart's new ceo, effective, february, 2014. >> they know there is a high-profile holiday season. walmart is one of those companies, black friday is incredibly important. why not wait until january 3 to say it? why now? >> on a monday morning. maybe we will find out more later on. >>. >> speaking of retail, a lot of discussion on whose going to be open on thanksgiving day at 6:00 p.m. 1 million xboxs in the first 24 hours. are you impressed? >> i am. game stop got hit. this the best buying opportunity you are going to get. there is tremendous demand for certain products. one of the products people like, gaming.

gaming is incredibly strong. i like the apple acquisition of this prime sense. what makes the xbox so exciting to people is connect. people like the connect. that's cool. >> they say, look, we are inquick tii inquisitive. you don't know about it all the time. >> i think apple needs to own this anything that it recognizes your voice and your hands, that's a win. what it says is, we understand the fight. we understand what we have to do. >> yeah. among the other retailers of note, jcpenney is going to leave the s&p and go to the midcaps and ray place arrow aeropostale. >> there are a tremendous number of retailers. the ones that have survived are

pretty strong. the tremendous number of retailers that used to whip through to january. they have to liquidate the inventory and pay all the vi venders. >> we'll see what crude does today. currently, 93.54. if we can duke it through the pipeline, maybe gasoline prices are cheaper. >> gas prices up last week. let's say it is 1 million barrels added. we have that big spread which has hurt the domestics. notice exxon, ever since warren buffett took this position, that's been the best performer. >> and the showdown between him and chanos. >> i was going back and forth with my friend, herb greenburg. all right, i know. they are doing the closed

system. i wanted a new guy. herb would argue that is not what they are really up to. whenever i say herb is up to, he is going to say, i'm not up to. he says, jim, why don't you characterize me. i am not going to get in trouble with herb. i'm too old. >> with the dow and the s&p looking to build, futures are rising. oil prices falling this morning. after six powers including the u.s. did strike the weekend deal. the deal limits iran's nuclear activity in return for relief on sanctions. the prime minister of israel, benjamin netanyahu. >> there is a lot of momentum going in. i believe we are going to get something on international tax repatriation. gold goes down.

>> 20% of the oil goes through there. 80% of that oil goes to the southeast asia. i think demand remains insatiable. anything that lowers means stocks are going higher. >> not to mention, a shortened holiday week. inertia gives the bulls a bit of a tailwind. >> friday has been historically a strong day. the trend is your friend here. there was a pretty good article in "usa today" about taper. the taper danger. look, there is no doubt about it, that the fed has voided stocks. you will see clorox downgraded. they have hated this group. it is peeking peaking after kimberly announced that great

news. people that have sold these stocks have regretted them with the exception of campbell soup. >> goldman cuts campbells and chlor ri clorox. >> the censure is doing poorly. the organics are doing well. we had the fresh markets blow up last week. you go to the center of the store, it is good except for fresh crackers and some apples. anything in a can. this is a reaction. if you take a look at carbonated soda. people don't want the diet drinks. they actually prefer kane sugar. i would rather be fat and die of obesity than thin and die of cancer. >> you want to get healthy, go to whole foods. they don't have a center of the

store. there is no center. there is just good house keeping seal of approval. >> goldman says they do prefer estee lauder. >> you know who is doing well, richemal and louis vuitton. how do you show you are rich if you can't own a mansion? >> how about a watch. the label is on the outside not the inside. >> i saw some of those on canal street. do you think they are the same ones? >> if you are going shopping, it might be a little cold where you are. a storm is heading eastward that could put a crimp in thanksgiving plans for a lot of americans. >> right now, that storm system, winter storm boreas, bringing rain and a wintry mix around dallas. things are going to begin to wind down.

now, our attention turning to little rock. anything in the pink and purple is the ice and the mix. freezing rain. a little bit of sleet mixing in there. rain as you head into parts of mississippi. memphis will be another spot to watch for the wintry mix. tonight, that wintry mix shifts over into areas like louisville, charlotte, north carolina, western carolinas. southwest virginia, much of tennessee and kentucky watching for the chance of slick road conditions. even northern sections of mississippi or alabama, even georgia, getting in on that. as we get into the day tomorrow, we will be watching for rain heavy at times through atlanta. that mix through parts of the interior mid-atlantic and northeast. wednesday is the biggest travel day of the year. this is not the kind of thing you want to see on your weather map on the biggest travel day of the year. . rain and gusty winds. i mentioned atlanta will be looking at 3-5 inches. new york city and boston getting in on the heavy rain.

wind gusts possibly up to over 50 miles an hour on the boston area wednesday. interior sections of the northeast, watching for the wintry mix, rain/snow. snow up towards buffalo and pittsburgh. following that, cold thanksgiving and friday. >> i just heard a collective grown from all our viewers. >> you are sitting and thinking, i want a big storm thanksgiving and real cold friday. can we make enough north face jacke jackets between now and then. that's why cities are raising the price target. i am raising my above citi's based on the weather. north face is what you wear whether it is cold. >> you got that right. very nice call, jim. >> apple's deal is not the only one in the spotlight. one said to involve yahoo! and

katie couric. thanksgiving week shaping up here. futures not looking too bad. we're back in a minute.

yahoo! making a big acquisition. they are said to announce katie couric as their global news anchor later today. yahoo! and cnbc have a strategic. >> this is what the world looks like in 2017. people that have name brands are going to be worth a great deal. you can put in couric and you have got it. this is the new world. this is the mediation from tv. aol has been saying it. the world will look very different. they are very forward looking. internet rights, maybe more than people thought. >> the coverage so far has tended to come from couric's point of view, which is understandable, love to gaze at her own business. it is a statement toward video where cpms for a company like yahoo! are much higher than any

other advertising. >> this next generation absolutely loves to watch things on their hand held or the small tablet. very interesting piece about intel soul searching that they missed the tablet. i like the people at intel but they did miss it. you will not know what is tv and what's not, specially when you get high-speed 4 g. couric is on your tv. i don't know. she is on yahoo!. it is not going to be tv versus not. when you talk about cable, cable is still worth a great deal. i'm not minimizing cable. all i'm doing is upping the game of yahoo! google and aol as destination places to watch tv that seems like tv but isn't tv. >> on a day where muffet from liberty gives an interview to the "times" talking about their chase. >> you can make a fortune. a lot of people talking about time warner, not necessarily run

all that well. i continue to think that you have to think about the world in 2017, 2018, where the people who are 18, 20, you really want them. they know tablet and they know wireless and they don't really care. they just don't care. it doesn't mean there are generations that don't love cable. i love my cable. i think it is terrific. my kids love cable but they like everything. very ecumenical. they like everything. >> on yahoo!'s front, hiring david pogue from the "times." hiring katie couric. you know firsthand the challenges and rewards of running content online, is she chasing after wind mills to any degree? >> she has a brand name. you google the brand name. they take a look. they dial in. so, no. it is going to be more and more pervasive as the older generation kind of dies out. no. i think to monetize, it is the best thing to do. the advertisers love t will they

still love it? advertisers love tv. they love it. this is a bet they will love video as much as they love tv even on handout. that's difficult. i am not going to go against mayers. he sh is she is a very bright ceo. google doesn't have to tell you. google is so strong. everyone wants to be on youtube. everyone wants to monetize the youtube channel. abc, nbc, cbs and fox. these are great channels when we come back, how should you go long at the beginning of a shortened market week. we will hear what cramer has to say in his mad dash. we will take a look at futures and pending home data tomorrow. in the meantime, "squawk on the street" is back in a minute. clients are always learning more

to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates.

a few moments before the bell, let's get jim's mad dash. a couple of calls on the big equipment makers. >> cat and deer. i went over the deere quarter very closely. i felt there were a lot of close things. i think deere and adco were in a dogfight but i don't want to sell deere.

they say buy cat. power systems and overlooked stability. they are talking about trough earns, $4.50 to $5. it has been a big defeat for the bulls. remember, this is a very heavily contested bear/bull battle. i want to favor the bulls except for the fact that cat keeps screwing up. >> their price target is 87, not far from where they are. they go to 100 as a result of this call. >> cat management, i always feel horrible slagging the company. the company is great. the ceo is this really good man. the company has not executed right. in the end, it falls back to the ceo. i always feel badly about that. doug is a terrific guy. they have not delivered in the earnings. they made a bad acquisition in china. they bought at the high.

they have made big mistakes, big. >> i have to imagine you are happier with this upgrade and the goldman upgrade of alcoa. >> no. i have been all over this. this is a bath time. i am telling you, of the upgrades i have seen i-want to go along with this upgrade. i think the stock goals 11, 12. klaus klein is saying his proprietary aluminum business has passed to a commodity business. i think this stock is going to be a big stock in 2014. >> they are talking about more emphasis on the cost structure and lesson the secular. >> take a look at what he has done. he has this big saudi arabia plan. he has gotten no respect. it is time he got the respect. when we come back, the opening bell a few moments away. don't go away. squawk in the street be back in a minute. [ driver ] today, my ae knew all about a bike accident,

just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before.

who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ [ indistinct talking continues ] [ male announcer ] so the magic shell went back to being a...shell. get live squawks right in your trading platform with think or swim from td ameritrade. >> monday morning, you are watching cnbc "squawk on the

street." live from the financial capital of the world. a busy floor down here today. a lot going on even though it is a holiday shortened thanksgiving week. we have a new ceo coming into walmart. a lot of economic data tomorrow. there is the bell. ringing it down here, vince corp, celebrating their ipo. >> people love accessories and clothes. people like the clothes. >> very nice debut on friday for the high-end clothing line retailer. >> at the nasdaq, ago pharmaceutical, developer of drugs to treat cancer and metabolic diseases. the one thing everyone is chatting about this morning is the dow. we need 155 points to reach an inflation-adjusted high, which has been out of reach for a lot of the indices so far. >> you need ibm starting to do better. it is not. it is such a focus name for me. it has been such a laggard.

3 m has been doing the lifting and it would be great if intel could join the party. microsoft up 38%. you have got a couple of stocks. verizon is not the problem. you need to see ibm start to roll. that's not been the case. >> interesting to see cat, which is a dow component and alcoa, one of the top line. >> i thought it was wrong. jcpenney should have been kicked out. tradition for tradition sake. al alcoa is going to be a big stock next year. people don't understand this is a reformulated company. there are sells on it as if it is a pure commodity play. they are in trucks and aerospace, 2 million, 3 million screws. they make fasteners, each of

these boeing planes, that's a great business. they don't talk about making the skins to the tablets. they don't talk about that, because apple doesn't want them to do. commercial construction is a gigantic thing. if you see that come back, alcoa is going to do well. these rogue chinese producers of aluminum will put that together. it is not the chinese that are ruining the alcoa story. it is the analysts. >> they have crossed a tipping point in terms of cost control. >> they have taken out so much high-cost capacity and put in low-cost capacity. klaus kleinfeld is probably the foremost world versus caterpillar. cat piller makes great forecasts and doesn't play them. if you go over the line by line, the quarterly reports that alcoa

puts out, they are primers for people. no one knows their markets like klaus. >> crude comes in more than $1. >> overvalued jetblue. wake up and understand, there is a rerating of the airline group. a great place to be, delta, united couldn united continental. don't forget the giveaway the government gave. if you fly, it is expensive and getting more expensive. the ten-year last week. did it spook you last week? >> you have the good size, which is the banks which do better with that kind of rate. the cd rates haven't moved at all. the cd rates are amazingly low. i thought the bond mark equivalent stocks would come down. people just like the market too

much. it is almost like -- wake me when they get to three. >> that your attitude? >> wake me when they get to 3%. we have been here before. it is okay. housing has not been great. housing has not been great at all. >> existing was no good last week. we'll get pending in half an hour. i think we just hit nasdaq 4 k. 4,006.77, for the first time since 2000. >> watch this caterpillar. it is such a battleground. it is a battleground stock. you can't execute versus the opportunity. my charitable trust owns comments. if you like the power systems, you should go buy cummings. they have executed incredibly well because of cat. i am sure the cat guys are

jealous of the columbus, indiana people. >> even after the last quarter when he said, he couldn't tell you when mining would come ought of this trough? >> they jumped the gun. they are a little gun-shy to say things can get better because they kept trying to produce a lot of inventory that was not needed. they have forecast pretty well away from china. china has been such a conundrum for cat. almost everything they do is wrong. you need china bad. that's why i like cummings. nasdaq, 4,000. i can't believe it. i remember those days. it was like going 4,000 miles, faster than it went from 3,000 to 4,000. >> last week, you mentioned financials taking some leadership. we did have a jpm. >> so strong. >> bank of america doing well today. citi says bny should be broken up. >> i thought that was incredible. my charitable trust has been buying bank of america hand over

fist. i went over the bank of america quarter. a lot of people feel they are not as bad as they used to be. no, no. they are good. they have a lot of earnings power. bank of america is the one to watch here. i think that gets to 20 before jpmorgan gets to 65. >> interesting. >> i think they have a very, very good book of business now. moynahan has turned it. the organization is getting strong again. the deposit growth is good. watch bank of america. it is a brokeout name here. they do very well with the yield curve and with how little you have to pay cds. >> we did mention a lot of analyst calls. there is one out of goldman starting burger king. goldman sees sustained growth, 18%, 20% a year. >> that's an interesting call. as far as i'm concerned, you want to do wendy's.

emma has got this brioche burger which tastes like you are eating a stick of butter. it is not bad. i have had it. i like their fries. wendy's sold off badly. i think wendy's can come back. this is like everest versus k-2. wendy's, rite-aid, sprint, people love those single dollar stocks. they love them. >> i am sure pelts is not too unhappy with that price. >> he has done a remarkable job as a manager. that stock is up. people thought that quarter was amiss. i thought it was misinterpreted negatively. the new wendy's remakes that went back to the one on third avenue. i find it, it sounds silly, i like the look of it. the remodelled wendy's, better than the remodelled popeye's.

>> the remodelled wendy's had a nice, big screen, high resolution tv in it that you can watch cnbc and not the other guys, by the way. with the s&p more firmly above 1800 and the nasdaq above 4,000, let's get to mary thompson and see what's moving on the floor. the iran deal helping to fuel the markets extension of this record run we have seen for the dow and the s&p. as you guys just mentioned, the nasdaq finally above 4,000 for the first time since september of 2000. it has pulled back a little bit as we have seen weakness in semiconductor stocks. what we are watching is a deal which has caused gold to come up and oil to drop as well. also, we are seeing the yield on the ten-year start to pull back at 2.74%. a couple of stocks we are watching, the dow movers. a new ceo coming in at walmart.

mike duke is stepping down. doug mcmillon is stepping in. ge says it is working. microsoft with a strong sales of the xbox 1 video game and caterpillar with the upgrade over bank of america. natural gas. as oil comes off, natural gas is getting a bid because of the big storm coming across the u.s. keep watch on the stocks in today's session. they are lower right now. a couple of changes announced after the clothes yesterdaclose yesterday. jcpenney will replace arr aeropostale. that allegiant, i don't think

that's the right tillcker for that. davita, medicare. this company says medicare is not going to change its reimbursements for kidney dialysis. there were concerns that it would actually have those reimbursements cut by 9%. we want to end with jones apparel. sycamore taking the company private for $16 in stock is on that news, not toward that $16 level. the dow moving on to modest gains of just about 23 points. carl, back to you. >> thank you very much. let's get to the bond pits and check in with rick santelli. the treasury complex last week hit some high yields. it is moderated a bit. it hasn't moderated much. the dynamic that remains in place are yield curve plays, meaning steepening. why is it steepening?

short rates are more controllable by the fed. let's iron a date out. let's look at early september for a variety of maturities. if you look at the five-year, you can see the right side is much lower than the left side. there is your yields under pressure, not moving as high. look as you move down the curve, september for the ten-year and specially the 30-year, where the right side has been basically usurping the left side of that chart. this is an important dynamic to keep in place. my guess is, it is going to continue to put pressure on the federal reserve to decide what it is going to do with q-e before the market does it for them. let's look at the boon in the context of those instruments under the same time interval. you can see what's going on in europe isn't as aggressive. what am i talking about in particular? the fact that we went through a great stabilization a couple of

julys ago. how much pressure are they under? let's look at the spread between the boons abunds and the tens. the dollar index, early september, you could definitely see. higher rate, stronger dollar. the one foreign exchange market that's really captured the trader's attention of late is the $1 yen. it is at a one-year high. a slow breakout. look at how flat it was prior to this slight up-side. carl, back to you. >> rick santelli, thank you so much. the banks, when you hear that curve, you go by the banks. you don't even question it. you just go buy them. >> that's what's happening today. >> as we get closer to black friday, critics are taking aim at target via twitter. we are going to tell you what they are saying.

>> tim cook predicting it is going to be an ipad christmas. this prime sense deal, their third largest ever. biggest of the year. >> i like apple here. i like the stock here. got nasdaq 4k. "squawk on the street" will be right back. tdd#: 1-800-345-2550 trading inspires your life.

tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. ya know, with new fedex one rate you can fill that box and pay one flat rate.

how naughty was he? oh boy... [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] fedex one rate. stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

welcome back. i'm sharon epperson at the nymex. we have been watching this plunge in oil prices since the market opened last night. we are looking at crude prices significantly lower. how low could they go? there are some that are anticipating we could see a much further drop. why? it may take a while for the full oil exports from iran to hit the market. already, kevin book from clear view energy says we could see an immediate increase of 285,000 barrels of oil per day for

iranian crude oil on the market. he is predicted by the end of the year, we could see food prices at $90 a barrel wechlt are looking at u.s. oil prices being impacted here. they are lower on the eggs is. while we are seeing retail gasoline prices 7 cents higher than a week ago at $3.28 a gallon. there are some that say we could see below $3 a gallon for the national average starting in the beginning sometime of next year as we see again oil prices continue to slide. but keep your eye as well on natural gas. natural gas definitely the best performing commodity we have seen here as we are looking at these very cold temperatures we are experiencing in new york and across the east coast and the anticipation of this winter storm and the heating demands that will occur. we are looking at natural gas getting a nice pop today. back to you guys. >> sharon, a $3 national average would be big news. thanks so much for that. sharon epperson at the nymex.

target getting heat for redesigning. a more minimalistic on their home page. people took to twitter to criticize the new design. >> here are a couple of tweets. i like target's new website says the one dude that was able to register on health care.gov. >> what is going on? >> what happened to target's website. it is like the graphic design intern got drunk and said, sarifs everywhere. this is what happens when you let someone in marketing design. >> the pushback is almost immediate in this new age no matter what you do. >> there is a company that was recommended to marcetto. salesforce.com is like, they don't like it, what should we do? look at twitter and jpmorgan.

it is please all or please none. you have to recognize, we were talking about walmart. don't mess with the website this week. come on. >> we talked at the top of shot about doug mcmillon walmart's ceo. there is a sense that this was long-planned. the time is is almost identical compared to when duke took over five years ago, days before black friday. the sense he was the natural successor is widespread within and without the company. >> sometimes you admit you are wrong. when you said this is the way they did it last time with lee, i said, geez, i guess this is the way they do it. it is no the way i would do it but it is the way they would do it. they are a bigger retailer than i am. >> no one is bigger than them. >> i really liked lee scott. he was a sensational man, sensational.

dow is in a bit of around, down. some big calls on big names. you seem extraordinarily fired up about the alcoa call and i haven't seen you as excited as vac. >> when i hear the yield curve, speaking of boeing, they have solved all these problems. when you bet against boeing, it has been a sucker bet. you think mcinner any doesn't see this or figure it out, it is a buying opportunity on the second day. >> with tesla up almost more than 2%, some might be hoping some e-mails. my daughter said, i want a tesla. i got her some stuff at sephora. >> maybe when you are older. how about that?

>> use your sephora card. >> it was a bad call by my daughter when i think about it. tesla. sure. i'll give you a couple of teslas. >> if she gets one, we have to talk. >> i just can't go there. sorry. the 2002 volkswagen beetle she has, that will have to do. >> here is what's coming up next on "squawk on the street." coming up, craikmer has stos to critique and just seconds to do it. >> in 60 and he knows it. >> find out if he can when "squawk on the street" returns. you get your coffee here. you get your hair cut here. you find that certain thing you were looking for here, but actually you get so much more. when you shop at these small local businesses, you support all the things that make your community great. the money you spend here, stays here. in this place you call your neighborhood.

this saturday is small business saturday. get out and shop small. losing thrusters. i need more power. give me more power! [ mainframe ] located. ge deep-sea fuel technology. a 50,000-pound, ingeniously wired machine that optimizes raw data to help safely discover and maximize resources in extreme conditions. our current situation seems rather extreme. why can't we maximize our... ready. ♪ brilliant. let's get out of here. warp speed. ♪ (announcer) at scottrade, our warpcexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me. i'm with scottrade.

(announcer) scottrade-proud to be ranked "best overall client experience."

. >> time for six in 60. six stocks in 60 seconds. let's start with charter. >> charter could pay $160 for time warner according to uvs adt. >> this is a shocker. they had a very good activist, core vex management on the board. resigning and repurchased.

they had a good quarter. this is a disaster. >> initiation of church and dwight. >> goldman, like somebody, i think church and dwight is a good grower. >> sell the neutral finish like. >> nike is such a bull market player. underarmor is working. >> cue bits. >> this is a company i have on all the time on "mad money." they have a new anti-bug drug. that's what they do. >> valuation call on aol. they will go in and buy all the stock they want to. just another time to buy aol. >> hey, how about tonight, what's coming up on mad? >> i've got first solar. they don't do a lot of tv. mark bristol, may be the number one gold company in the world. last time, i told him he was mining a lot of scary places, he said, jim, it is not for sissys, which implied i was a sissy. i beat the heck of the guy that

did that last time but this guy i am not going to mess with. irwin klein, his stuff is doing well, why? because it is organic and natural. he is anti-gmo. >> that is a show. >> the bookings have been incredible. i am so thrilled. >> it does bring to mind some of these momentum names and the way they have been waffling back and forth. today, notwithstanding. the biotechs. those have been sensational. all had european approvals of some sort. i would add rejgeneron. it is a very good group to own in a slow, sluggish economy. the banks with this yield curve. a jpmorgan, what a great comment. enough is enough with that. what's the plan with the fines and the prosecutions? people should read that. cutler is a very tough guy.

he has not been able to stem the tide. >> he has had his hands full this year. >> paul weiss is one of the lawyers. ted wells, a fabulous letter in the incognito situation. >> i love that line. >> i didn't mean that. it was facetious. >> we'll see you tonight at 6:00 and 11:00. >> let's see what's coming up at 10:00. one month from today, the kids will be opening their gifts on christmas morning. will it be an apple christmas? that's in the next hour of the program. we get a look at the huge winter storm that's making its way across the country on the disruption to thanksgiving travel. also ahead, can yahoo! stop surge like netflix did if marissa mayer keeps hiring people like katie couric. [ engine revs ]

♪ ♪ [ male announcer ] the mercedes-benz winter event is back, with the perfect vehicle that's just right for you, no matter which list you're on. [ santa ] ho, ho, ho, ho! [ male announcer ] get the all-new 2014 cla250 starting at just $29,900. [ male announcer ] get the all-new 2014 cla250 she's always been able it's just her way.day. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache.

to avoid long-term injury, seek immediate medical help for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. i have obligations. cute tobligations, but obligations.g. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. ♪

[ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. welcome back to "squawk on the street." i'm diana olick. pending home sales are down. the fifth straight month of

pending sales. signed contracts, not closings, a forward indicator. the realtors say the government shutdown did play a part in this but only very slightly. we do more people are coming back into the market after they had the government shutdown. in the northeast, sales up, 2.8%. in the south, down 0 .8. in the west, down 4.1%. that's where we are seeing investors falling out of the market. the street was expecting just over 1%. down, 0.6% month to month. carl? >> diana olick, thank you so much for that. walmart choosing a new ceo. a company veteran will succeed mike duke effective february 21

of 2014. our own doug faber spoke to him about the ceo in 2009. >> could you see us being ceo of walmart one day? >> i have no idea. i have my hands full with what i'm doing right now. i'll tell you a quick story from lee scott a few years ago. i was working in the walmart us business. the company was asking me to move to international to be responsible for merchandising for sam's clubs. i didn't think it was the right thing to do. i would have been traveling. my kids were young. i didn't speak spanish. i went back into lee's office one morning early and said, what should i do? i don't think it is right. before i could get a sentence or two out, lee laughed. he said, the company will guide your career. it is not your decision. >> fascinating work. courtney reagan joins us with more details. not only the timing of mcmillon,

coming on that. >> the leading retailer announcing doug mcmilan will succeed mike duke. duke was known for expertise and lodge gist sticks. he said his decision was a personal one to retire. mcmillon has spent 22 years at walmart. his first job was as a summer associate. it is black friday week, a week walmart acknowledges that it is the busiest. the deals have been set for months now. walmart says the timing of the announcement isn't abnormal. in fact, it linings up very closely to the timeline when mike duke succeeded lee scot. it was announced in late november. duke will be ceo through the holiday quarter and will

transition mcmilllon over the next couple months. it lines up with the company's fiscal year. duke will remain on as chairman for a year. lee scot also stayed on as chairman. duke began on february 1st, 2009. mcmillon will begin on february 1st, 2016. another big story, italian automaker, fiat, says chrysler will not launch an ipo before the end of the year. hey, phil. this is one of the more unusual ipos if it happens. it is a tug of war right now between sergio marquee owe any and the fiat board. the chrysler ipo says it is not practicable this year. veba, the trust, wants it to

happen as soon as possible. some are talking about it happening the first two weeks of december. most likely, we will see a chrysler ipo if it happens in the first quarter. a lot depends on whether or not there are some negotiations that can take place before. sergio marcioni the ceo of chrysler and fiat wants to buy the remaining owned by the trust. they have a big discrepancy, $7 million in terms of the value of that%. the veba trust says it would offer the 16% of its stake in the ipo. if you take a look at what's happening to shares of fiat, they have been falling over the last several months. this is crucial, carl, that they get this other stake in chrysler, this 41.5% stake. that is going to help them as they turn around the portion of the business. if it goes to an ipo, it becomes much more expensive.

again, we are not sure if this is going to happen. if it does, first quarter of next year. carl? >> can i ask you a quick question? according to some of the reports we have had out in public, it would be the moment we are in a tense ipo language. we don't know what's happening behind the scenes. is it fair to assume that the third party through the ipo process, valuing chrysler at the low end and, therefore, veba, is turning around and saying, actually, we will probably get more by selling our stake directly. we won't have to pay the fees or go through the process. or is that not the case? >> that is not the case. veba believes that it is worth a lot more than the valuation that fiat and sergio marcioni. they believe the ipo in this market will show that their stake is worth a lot more than sergio marcioni believes it is

worth. he says it is going to come in at the low end. veba believes it is worth a lot more. >> phil lebeau there in chicago. let's turn to oil prices falling this morning on news of the groundbreaking controversial deal to curb iran's nuclear program. we have lost 90 cents. 93.94 is where we trade at the moment. let's bring in allen harry, ceo for the spartan commodity fund. where do you think prices will go from here? >> i think lower. right now, we are seeing the market weak. we also see when it does come off, it comes off hard. it is struggling to get back up. we need news of great cold fronts that could possibly get the market to rally. >> are you surprised we are only down 1.5%? >> not at all. i am surprised we held up these levels with the news events coming up.

>> that's kind of what i was asking. if you said you were a little bit bearish here on crude, the implication meaning, maybe we should be lower right now. there are others out there that look at this, at the deal as to whether it will get through congress, whether there will be changes and whether there are other geopolitical pressures. it could put upward pressure on crude in the months ahead as a result. >> the biggest thing is we have the possibility of a very cold winter starting. that's keeping the prices up at the moment. the idea we could have a couple cold fronts coming in and spark that moment up, that's what is keeping it up. >> they are down 12%, 13%. you are in a clear downward trend. you know what happens next year. credit swiss is out with a note. they are suggesting that there could be sharper corrections moving forward. not the least because emerging markets are slowing down and are likely to slow down more if you

get rising interest rates in a fed that's exiting here in the united states. what happens to commodities in 2014? >> i agree with that. i think we are going to come off even further in crude oil. i think we could see $85, $86 in crude oil halfway through next year with the fed stopping the purchasing of the bond program and slowing it down. i think we are going to see a lower level for commodities, specially crude oil. >> alan, in that case, where do you put money to work? >> any rallies up to 95.5 level i'm selling and i'm keeping short the market. if we break 96, i buy back in those shorts. the highest we see for crude oil this year is 98.5-99. i sell up to $100. >> gas prices are higher since

2011. >> it is not going to happen until later on into next year. i think it is going to happen in june and july of next year we are going to see the gas prices down to quite a bit of a low level, and reflective at the pumps. >> alan, have a great week. >> speaking of some pressure coming off the consumer at the pump, as we get closer to black friday, we would like to focus on one retailer that is hoping to see a sales boost in one product. colin gillies joins us now. we are also joined by our very own john ford. guys, welcome. >> hey, kelly. >> colin, first to you. christmas, a tall order? >> it is one of those comments that could come back and haunt you. we are modeling 20 million ipads sold. investors could be let down if they don't materially exceed

that. >> jon, what do you think? >> they did $23 million last year. $25 is not that much. they did $23 million coming off a fiscal year where they had done 58.3. they had done somewhere around 71. you would hope, of course, it would be higher than that. >> you have to wonder if the display quality issues, that display made us point out, that amazon and google have higher color quality in the mini-displays, if that is hurting the consumers. >> it is following the same path as the iphone. >> the only smartphone was an iphone and the competition slowly caught on. it is the same thing with the tablet market. the only tablet was an ipad. amazon is going to get a little traction. >> my kid only wants an ipad for this christmas. >> why? >> he is five years old.

it is eye nica nice, easy syste. he likes his kindles, doesn't like androids. we have our testing done at home. >> as far as investors are concerned, will it be an apple christmas? to the up side? >> i think there is very few left in the nude. i i think most of the good news is out in the name. >> i thought there was some coming next year. wearables, wearables. on tv. >> samson has sold 800,000, shipped. we don't know if those have sold through. >> what about the acquisition that we have had overnight, they are moving into new areas of technology? >> they should be doing that? they are behind the curve. motion sensing is something that's a big part of the home living room. the connect was one of the fastest selling consumer

electronics devices at that time. they need to push into that. >> it is their biggest acquisition of the year. the third. 350 million, right? >> i know. my point is, is it a canary? are they going to start putting more cash to work or not? >> they should be. >> they absolutely should be. this whole word about, don't hold the cash, increase your dividend and your buyback, be a little more inquisitive. they are lacking in payments and advertising. there are a lot of areas where they are weak they could grow in. they could go up and down the stack a little bit more, which they are doing. they are putting a lot into cap ex and manufacturing. still, go out there and be nipping away at these $500 million and below companies. >> particularly, that's their efficiency story in the holidays. they are trying to figure out how to ease the traffic in the apple stores, get people to do more customer support online. we saw that pop up with 9 to 5 mac and a couple others. they are trying to steer people

away from walking into the apple stores. >> they wouldn't steer people away from the apple stores. >> walking in there with a problem. they want you to walk in buying something. >> i figured they would do anything to get people in the door. >> if they can solve your problem at home and you don't have to come in, maybe you would be happier. >> maybe the malls won't be. in any question, we will see who gets the consumer wallet as we head up to the holiday season. >> it is thanksgiving week. while most of mark america is lg forward to turkey, we are looking forward to the bulls. the nasdaq hitting 4,000 for the first time since 2000. "squawk on the street" will be right back. (vo) you are a business pro.

maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

welcome back to "squawk on the street." the market for obesedy is getting a new player, orexigen. a drug was rejected in 2011 on concerns about heart safety. if approved, the drug would be the third approved obesedy drug

on the market. back over to you. the dow and s&p setting record highs. the nasdaq hitting 4,000 for the first time since september, 2000, also before pulling back. what's ahead for the market now on the shortened holiday week? >> delighted to welcome managing director and principal. gentlemen, good morning. >> joe, can the market keep going? >> i think markets keep going higher from here. you are continuously peeling away a little bit of the uncertainty. the news we got out of geneva this weekend reinforces that. you have lower gasoline prices, economic data, somewhat stable. as a result of that, markets keep inching higher. >> let me pick up that oil

price. you have deflation here. going into 2014. what does that mean for the market? >> i think it is really good, simon. what you are looking at is for the consumer attacks, a tailwind now that they are going to have that they could spend more. industry, companies are going to have lower commodity costs going forward. that starts getting built into their projections. you are going to see that, specially in the u.s. you are going to have companies doing better and consumers will spend more money on discretionary items. that's the area we are looking at with the auto, airlines and cyclicals, they are going to benefit. the commodity industry is going to get hurt. >> the retail investor continues to pile into the market. for a lot of professional investors, do you book profits or hold to year-end? if you look at the calendar, the event risk as you move through for those worried about tapering is quite stark. two-weeks time, you get the employment report. two weeks after that, you get

the fomc meeting where they may decide to taper or not. you have the end of the year and what that may or may not mean to the professional investors. >> does that worry you, joe? >> a lot of it is hinges on the jobs number. i continue to believe the fed is going to be on hold until early next year. the only reason i say that, they still want a little bit of time to assess the economic damage that was caused by washington and the latest government shutdown. it is certainly a possibility that the fed announces tapering in december. my guess is they push that off a little bit. it is really, simon, a matter of when and not if. >> just curious. there are so few stocks that haven't participated in the rally. is the strategy before year-end, you think the investors should buy the few dogs that there are or stick with the winners? >> you stick with the ones that are going to grow. the value traps of companies that don't have secular growth is going to sustain to the next couple of years. i would stick with companies that are going to benefit with

interest rates starting to rise. you are going to have lower commodity costs and multinationals that will grow overseas. stay away from what we call the dogs. there is a reason that investors have run to companies that are going to do well. >> usually, this time of year, you get the professionals saying you will get 10% gains next year in the market. they are not saying that this year as they highlighted over the weekend. they are forecasting in the middle, single digit to slightly higher. does that worry you or are they underpromising to overproduce? >> i think that's a good thing. if we had too much bullishness, people will start projecting better earnings. what you want is people to underpromise and overdeliver and look for areas that are going to do well. that's kind of what the discussion is all about. nobody would have predicted we were up in the s&p. people are managing ex ppectatis for the next couple of years.

the market is going to be 30%-40 3i % higher. markets have run over this year. you can no longer make the argument that stocks are just dirt cheap. it is just not true. if you consider the opportunity you are going to see in dividends, earnings growth, you are still looking at a reasonable return over the next year. >> have a great week. coming up, the winter storm that has already slammed parts of the south and west headed this week. it could wreak havoc on your holiday travel plans. we'll get an update on the path of the storm when "squawk on the street" continues. how naughty was he? oh boy... [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] fedex one rate. ♪

♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. you get your coffee here. you get your hair cut here. you find that certain thing you were looking for here, but actually you get so much more. when you shop at these small local businesses, you support all the things that make your community great. the money you spend here, stays here. in this place you call your neighborhood. this saturday is small business saturday. get out and shop small.

stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare. the deadly winter storm being blamed for 13 deaths is headed to the east and during one of the busiest travel weeks of the year. dallas beginning to see things lighten up, quiet down locally. we are still not done with this winter storm. little rock now beginning to see that wintry mix. anything in the purple, that's the ice, the freezing rain.

anything in pink would indicate the wintry mix, snow in blue and then we have rain showers further off to the south and east. shreveport seeing rain. you can see around little rock and portions of southwest arkansas, we have penty lenty o ice and mix showing up. slick roadways, overnight. freezing rain possible in places like little rock, memphis. over into the western carolinas. charlotte, north carolina, getting in on that. rain around the atlanta area, north georgia could see a little bit of sleet mixing in at times. tomorrow is going to be a washout for the atlanta area. 3-5 inches possible as we go through the next 48 hours. tomorrow, rain begins to work up the east coast. d.c. begins to see it. same for new york city. late day. tomorrow night, heavy rain along the 95 corridor. we are going to keep that going on wednesday. that huge travel day we do not want to see any weather problems and with a weather map like this, you can anticipate there

will be trouble on the roads and at the airports. in addition to the heavy rain along the 95 corridor, gusty winds. further off to the west, mix of rain and snow to syracuse and pennsylvania and maryland and virginia, cold as well for the macy's thanksgiving day parade. >> back to you guys. straight ahead on the program, another possible high-profile hire for marissa mayer at yahoo!. what exactly is marissa up to? more on that on cnbc. he market, he market, but i can't just sit on my cash. i want to be prepared for the long haul. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes

investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. anbe a name and not a number?tor scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. but it sure feels that way. because with power ports... and wi-fi... and in-seat entertainment, for everyone on board, now when you fly, time flies too. (flight attendant) sir, we're about to land.

(vo) we're adding a brand new plane, with all this, every week. it's just one way we're building the new american.

>>. >> an an hour into the trading session, here are stories we are squawking about. pending home sales fall forginga fifth consecutive month. caterpillar is the biggest gainer on the dow up 2%. merrill upgrading heavy equipmentmaker to buy from neutral saying cat's power system business should put a floor under earnings. shares of twitter falling 4%.

they are no yw at a new 4% ipo w yahoo! close to announcing a deal with katie couric in a big bet on video. the deal is expected to be announced as early as today. here to way in, john steinberg's vice president and coo, a cnbc contributor. nice to see you. >> good to be here. >> you call this amazing, interesting, curious? >> yahoo! is going to be a media company. it is kind of a little bit of a go-back to the terry semmol, ross levinson. now, we have katie couric being the global news anchor for the front page. >> if you made this move, what was the first metric you want to see move. >> socialist. that front page can send so much traffic to any piece of content. you don't know if it is good or not. social is the new metric. they need to be closely

monitoring how many of katyie's stories being shared. >> this is a big push into video, which they already have quite a bit of. how important is it for them to get mine share the same way a regular news channel would? the young consumer might get their news from a young katie couric or yahoo!? >> the trade is starting to continue. we were talking about a lot of over-the-top that's happening. the cable companies become broadband companies and consolidate to try and keep prices high. everybody now goes over the top. katie couric is essential to that. >> they are trying to do it in a very uphill way. if you look at netflix, a subscription model. if you look at cable, a subscription model. what she is betting is that she can do it through display advertising. you work in this area. this is now auctioned in real

time, online. this is a brutal area in which to sell advertising, isn't it? >> i completely agree. it is brutal. it is a very old way of going about it. she is a very traditional anchor and it is a traditional media strategy. they aren't doing something edgier and younger. >> how can they monetize a tv budget? how can they make money back from that? >> the video cpms are much higher. i don't think this is a future approved strategy or a way to turn around the company. >> it is a flashy move by marissa to grab attention. >> i think katie is a very traditional anchor and not somebody that is going to bring a young audience. you don't have the youth audience. >> she might have an older demo but there are few personalities that are better known than she is. >> that's a traditional, old way of looking at the world. a giant front page, a giant network. you assume you are going to

flood people at it. social is the way most people are getting trafficked to online media. the network viewer ship came out over the weekend. they did an article showing that the rates are going high, because the viewer ship is actually going down. >> thanks a lot. you guys, over the top is a big strategy for you too. >> we understand. we talk about it all the time. >> you guys are also pursuing video. >> what's the right way to go about it? >> brand to con ten. to simon's point about the banner ads being a downward slide. creating original content, using the organic, editorial content to get enough traffic and circulation. that really is the future. that's what everybody is going into right now. it sponsored stories on facebook and linked in. it promoted tweets on twitter. all of the great online properties are going to a more y native, content-driven content. they will create stand-alone content that needs to be clearly

labeled. i am going to an fdc hearing in a couple of weeks to talk about clear labeling around native, content-driven advertising. >> you have to go back to '08 for some of these levels. the critics continue to say it is all based on ali babba. >> it is an inordinate amount of the stock's value. whether it is opens at 100, 150, or 200 massively moves the stock. yahoo! does start to become expensive. >> jon, good to see you. have fun at your ftc meeting. jon steinberg. we should let you know that cnbc and yahoo! have a business line and co-produce content. money is flowing out of china in the hundreds of billions. find out who is benefiting from

this wash of cash when we come back? watch "squawk on the street" monday morning on cnbc.

just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. store and essentially they

just get sold something. we provide the exact individualization that your body needs. it's the ultimate sale on the only bed clinically proven to improve sleep quality. the sleep number bed. once you experience it, there's no going back. for one week only, queen mattresses start at just $599.99. and save 50% on our limited edition innovation series beds. plus special financing. only at a sleep number store. sleep number. comfort individualized. so, if you're sleeping in your contact lenses, what you wear to bed is your business. ask about the air optix® contacts so breathable they're approved for up to 30 nights of continuous wear. serious eye problems may occur. ask your doctor and visit airoptix.com for safety information and a free one-month trial. yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex.

welcome back to "squawk on the street." check out shares of qualcomm, the biggest maker of chips for smartphones. they are down toward session lows after chinese regulators have said they are looking into possible antitrust or anti-monopoly concerns for qualcomm. qualcomm says they are continuing to cooperate with the chinese regulators. those shares taking a hit at least right now in the current market. back over to you. thank you very much. china used to be known for record capital inflows. it is now dealing with hundreds of billions of dollars worth of outflows. where is all this chinese money going? robert frank is back at h.q. following the capital. good morning, simon. china's wealth flight has been america's gain whether it comes to mansions, diamonds and fine art. they now hold more than $450

billion in offshore assets. that's pouring into condos in sydney, vineyards in france and investment accounts in singapore and hong gone. chinese buyers scooping up $13 billion worth of real estate in the u.s. in the past year. that's up 50% from 2011. chinese are now the largest foreign buyers in san francisco, seattle and lots of other cities. zang shin, one of china's richest women just bought a townhouse in manhattan for $26 million. china's richest man, his company bought a picasso at christie's for $28 million. the largest diamonds are being purchased by chinese buyers. they sold a white diamond in hong kong for $30.6 billion. the big drivers behind the sooring prices for vintage wine. a case of wine sold for $474,000. $39,000 per bottle.

guys, real estate brokers telling us that in the last four months, buying from chinese has just exploded. this hasn't shown up in the numbers yet. we are going to see some big increases here. kelly, back to you. $39,000 a bottle. robert frank, thank you very much. it is incredible. how are chinese buyers affecting luxury real estate sales here in new york? let's bring in our manhattan real estate experts, dolly lens. >> good morning. it is a good morning. >> if you have real estate and you can sell to some of the chinese buyers. how strong is the market here? >> i have just spent the entire weekend running from place to place, person to person, every single one chinese. i have to tell you. chinese are the new russians. it used to be when you say i have a russian client, i want to see the appointment, the red sea parted and in you were. that's true for the chinese.

i have a chinese buyer, i'm going to get any appointment i want. it is amazing. >> you have done outreach work in asia to drum it up? >> for 20 years. chinese like tangible assets, hard assets, diamonds, art, real estate. they feel they can see it or touch it, it is much more real to them. >> as clients, do they like to haggle, do they like to meet in person, do they communicate over the phone? do you have to hold their hand or not? >> you don't have to hold their hand. they are holding your hand, because they are far smarter and know more than we do. they know more about the metrics. they mind their own data. they are forward thinking. they know it all. you better be on your game if you are dealing with a chinese buyer. >> do they want to buy only new? >> good question. the change recently is that they now want to look at pre-wore as well. my entire weekend was spent on

pre-war apartments. they want to know, what do new yorkers consider luxury. they are following what new yorkers consider luxury. that is pre-war. >> do you get a sense of what is driving this? is it people looking to protect their wealth and get it out of the country? >> all a mixed bag. looking to get their wealth out of the country and protect their wealth and to diversify their wealth. they don't want it all in one pocket. hong kong, on the peak, $64 million, $65 million are the most recent sales. the rentals are not there. the rental returns is better here in new york and san francisco. >> also, a big tax advantage. they can be nonresident for income tax purposes. most of the local taxation is on income tax. >> not only that. there is a whole thing now going on in hong kong where they are

trying to reduce their inflated pricing. they are putting all these taxes on new purchases which is further pushing them to us, thank you, hong kong. >> when they buy something, do they gut it or are they willing to live in it? >> no, no, they are generally smart about it. if it is really nice, as most buildings are affordably nice, they are willing to live in it the way it is. versus the new york buyer. new york buyers are gutting pristine apartments. it is a very different thing. >> i keep getting hand written letters saying i have a buyer for anything going in your building. what is happening with supply? is there just literally no supply now? >> there is not enough supply. there is supply. there is new supply. you don't see it on the market. it is not publicly listed. >> because it is so high-end. >> exactly. there is supply. not enough. we would rather give someone six choices and say to them, it is these two. which one do you want? >> real quick. this is going to change the

dynamic here. are you talking about properties that are or are not occupied? are they investment properties or properties that are rented out? >> in their minds, they are investments, long-term. that could mean a short-term rental. you can get this much money to rent it out. why wouldn't you? >> they generally do. >> folks to have that people that foot traffic. >> it is a win-win when you rent it. empty amounts aren't a good necessarily. >> fascinating. [ speaking in chinese ] be sure to stay tune for more on the china factor during lunch. you can find out why more of them are snatching up real estate in california. the co-founders of soul cycle will join us live and talk

about how they are peddling their way to success. their plans to expand the brand when "squawk on the street" continues. tdd#: 1-800-345-2550 trading inspires your life.

tdd#: 1-800-345-2550 life inspires your trading. tdd#: 1-800-345-2550 where others see fads... tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. [woman]ask me... [announcer]...if you think the best bed for one of you might be a compromise for the other one... [woman]ask me about our tempur-pedic. [announcer] they're sleeping on the newest tempur-pedic bed...

the new tempur choice... [man]two people.two remotes. [announcer] firmness settings for the head,legs,and back... and with tempur on top,that famous tempur-pedic comfort comes any way you like it! [woman]ask me about the lumbar button. [man]she's got her side...and i've got my side. [announcer] tempur-pedic.the most highly recommended bed in america. [woman]don't touch my side!

dow is up 41. let's get to the c&e group and talk with rick santelli. >> we are going to hit yield, spreads and derivatives. we talk about the key technical area. the retracement of the first large move in may when interest rates went up equating the five-year to 139 and the ten-year to 247. we tested it at 10:30 eastern. when we hit the important mark for the five-year, we hit the 283 in the ten-year. if you look at the issue of 247 to 283, the difference when the five-year is the same is 36 base points. what does that mean in english? it means that the market is looking at the fed and tightening up to the tune of 36 basis points. watch those spreads. now, let's talk about what's going on between bunds and tenure.

let's show a chart. 7 1/2 years since we have been this wide. why is this significance? it gives you a glimpse of this and the equivalent trades going on in europe on the same maturity. it also gives us an idea how theys, what are they? swatched execution facilities. october 2nd, the cftc mandated that a large group of derivatives need to be traded there. to not replicate some issues we had on the 673 trillion swap market, but it's a great story in the asian reuters titled new u.s. derivative rules leaves asian markets vulnerable. asian participants are not legally bound by the rules drawn up by the cftc. further, citi, goldman, morgan stanley offering london subsidiaries for asian counterparts to settle trades,

set derivative dealers in singapore, hong dong and seoul who are involved in the trades. what it really means is, not only mean there's a market vulnerability in asia, it shows us that there are unintended consequences to overregulating or even just regulating the markets at all. when you take it to a global perspective, it becomes dicier, it's not only unintended consequences which are easy. whether looking at obama care or regulations that i'm discussing now, there's four letters that make it all interesting. costs, that's why there's an avoidance there. but in the end, the global dynamics of trying to regulate markets when you have offshore facilities to usurp some of the rules it means it's going to be more difficult to monitor the market and much of the anxiety over what caused '08 may

continue to move on. >> thank you. days away from black friday and critics are taking aim at target via twitter. what they're saying to the retailer. (vo) you are a business pro.

maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro.

welcome back to "squawk on the street." shares of dialysis companies are on the move. a couple big names, davita, fresenius, reducing payments to providers by less than originally thought. proposed payment cuts to these companies was much higher. remember, davita a company that's a favorite of warren buffett berkshire hathaway that owns 15% of outstanding shares. >> a long-term demographic play. target's getting heat for redesigning its website days before black friday. they spent years moving it to a minimalist excite. now it shows more products on the home page. people took to twitter to criticize the new design. a couple tweets. i like the website, says one good who was able to register on healthcare.gov. what is going on?

what happened to target's website? it's like the graphic design intern got drunk and said serifs! everywhere! this is what happens when you let someone in #marketing design a website. >> fonts, you know, people back in the day, used to be about personal handwriting, this day it's about fonts. >> or people on twitter commenting on target. >> in a font of their own. >> amazing how quickly the blowback comes as simple as letters you use. >> i'm not sure it's a terrible thing for target. we're all talking about it. if you wanted to promote your website ahead of black fridays. there are better ways. >> putting more product on there's going to sell more, bottom line. >> yes. but if you show more fonts, do you sell more product? >> i made a list of retailers open at 6:00 p.m. thanksgiving. best buy, macy's, kohl's,

target. it's almost a liability if you're not open thanksgiving night. >> consumers, you have the power. if you do, know what you are doing. >> for the mass market, others were taking full page averts, we will not be open on thanksgiving for family value. >> take dillard's, typical department store chain. rolf stores, a discount. >> walmart and doug mcmillon taking over reins as ceo, 47, replacing mike duke, 63, effective february 1. that's big news for the nation's largest retailer. questions why now, right ahead of black friday, why would you make a move like that? >> it's not disruptive for a company. it's a transition. we played a clip of him talking when they said they put him into international, he was worried about going and the ceo said you're a company man, you do

what we say, we plot out your career. inside, i'm sure it's not. >> a lot of discussion is when the board meets. timing to when mike duke named to the job five years ago. investors paying attention. jcp, big winner but exit. >> for those who have trailed the broader market, there are few and far between one of the best years in terms of the scope of the rally in a couple of decades but what happens now with the jcp? do people look for bargains, harvest the losses. >> and the deflation driving through the sector, why everybody is in difficulty. that's a figure effect. >> if you're just joining us, here's what you missed earlier on. >> welcome to "squawk on the street." here's what happened so far. >> my data shows fair market value based on current earnings for the dow is probably around

18,000. now it doesn't mean we're going to get there right away or in a straight line. >> we are just getting significant management changes at walmart. doug mcmillon to replace mike dug effective february 1st. >> will we know from an organization that this is cryptic as walmart whether it was a surprise? >> no. yeah, we really won't. >> there's the bell. >> oh, i think we just hit nasdaq 4k, if i'm not mistaken. yes, 4006 for the first time since september 2000. >> holy cow! >> where do you think prices will go from here? >> i think lower. right now we're seeing the market weak. we see when it comes off it comes off hard. struggling to get back up. >> only tablet was an ipad. amazon's going to get traction,

microsoft a little traction. >> that being said, i'm going to buy one. >> what's the first metric you want to see move as a result? >> social lift. social lift. front page can send troofk any piece of content. >> and good morning, monday, live at post 9 at new york stock exchange. we are off our highs of the session. key levels hit at the beginning of the trading session for the nasdaq. that punched through the 4,000 level for the first time in a decade. now pulling back a bit 3992 is the latest level. barely higher for the morning, adding a couple of points one point on the s&p 500. dow's up 30. shares of twitter slipping, falling below 40 bucks a share. down 21% from its high shortly after it went public. meantime, shares of caterpillar

rallying as stock upgraded to buy. $100 a share. >> road map for this morning the weather. a massive storm is moving across the country and it has potential to hurt retail sales, ruin travel plans for millions of people this thanksgiving. the latest in a moment. plus, a major diplomatic milestone reached over the weekend. u.s. and iran agreeing to historic deal that would temporarily halt their nuclear progress. but now that the deal is done, what happens next? we've got answers. spin is in. at least that's what the founders of soul cycle are hoping. the company's one of the most popular exercise start ups in jeers. growing by the day. we'll talk to the co-founders in a few moments. what do a red mac book, golden ear buds and storm trooper helmet have in common? answer is interesting, we'll get that later this hour. >> i hope you're wearing all of them. travelers beware, a massive storm making its way across the country, threatening to wreck travel plans of millions before the thanksgiving holiday.

maria larosa joins us. >> the latest is, it's a mess out there. for so many we're on the fringe, it's going to get worse. one place improving is dallas, where most of the wet weather has moved off to the east but still right on the fringe as far as where freezing temperatures are. big concern over the next few hours little rock and northern arkansas where you see the pink and the purple. that's a transition starting to see freezing rain reports there. i-40, definitely one of the interstates to watch over the next day or two. that's the area in pink we want to keep an eye on. that continues today and tonight. notice heavy rain pushing into the southeast. impacting i-10, i-20. this is a concern heading from tuesday into wednesday. now into the northeast. the good news, if there's a silver lining to clouds, i-95 all rain through tomorrow night and into wednesday. big travel day. notice how much wintry weather to the north and west. significant snow interior

northeast including western pennsylvania. but all big airports in the northeast impacted wednesday, greatly boston, new york, philly, d.c. taking a look at new york, it is the big travel days here tuesday and wednesday that have most impact. by thursday, it's the cold and wind but everything moving out and notice sunshine, that hangs on for much of the country, in fact, for black friday and into the weekend. maybe more importantly, too, sunday's travel weather is shaping up to be pretty nice across the country. that's good news here, a rough couple of days heading into the holiday. >> thanks so much. let's stick with the weather and ask, how will mother nature affect retail sales this shopping season? director of furnishings research at raymond james and david schick an analyst. walmart succession here, first, weather, net positive or negative for retailers going into the holiday? >> well, certainly not a positive, at least as it shapes

up now. as we get through the weekend, and it gets better, it probably lifts as an issue and over the long term probably just a bit of noise into the beginning of the holiday. >> does it focus your attention, cramer said maybe the north face inventory moves faster than people thought? >> well, certainly that's what happens with weather like that, you get sell through of items that are weather appropriate. so that's not an unusual situation. >> david, it's true, a lot of the areas of the country waiting for winter. is this going to affect models at all? >> doesn't affect the models. it's important to note, as bud said, it's noise over time. last week retail underperformed the index 2%. as they reported earnings. many retails reported earnings and talked about the sluggish consumer, et cetera. this is another example. people will get focused on this. there are groups within retail that will benefit from a cold

snap. then we move on. but it becomes easy compare for next year, if there's a weather -- massive weather impact. >> david, title of your note this morning on walmart, no surprise. why is that? were you thrown by the timing of this announcement today? >> no, not thrown by the timing. the timing becomes the timing anytime it sort of happens, i hate to sort of say it on a news program, but it's not really news. i think doug mcmillon's been groomed for this position, ceo in training for some time. perhaps you know extra happy holiday to the mcmillon family at home sort of timing, i don't know. >> what about you, what was your initial take? >> my initial take was that doug was certainly an heir apparent, another potential heir apparent in bill simon who runs walmart u.s. timing wasn't strange. as carl said it matches timing

when lee scott ceded the reins to mike. >> i wonder if you look at walmart, some struggles lately, whether it's company specific relative to their rivals, i think target outperformed them 2-1 over the last five years in term of share price or headlines how they're paying workers or providing benefits. should they have pursued more of a shakeup or is this what they represent, a younger face, a guy from international? >> i don't think they should have pursued a larger shakeup. i think this is vintage walmart and a rational way going about their business. and regarding the other issues, those are out there in the public domain. walmart's been quite good in terms of responding to a lot of the issues out there over a long term. i think it's really pretty good news for walmart continuation of

leadership. >> does it mean renewed focus on u.s. as opposed toint nationa r international? >> walmart has focused increasingly on the small store development in the u.s., testing it but rolling it out. that matches up with the omni channel strategy. i don't know that it's deemphasis of international but there's new talking points and directions for the domestic business that are part of the emergent walmart story. >> briefly, while we've got you, amazed at performance of the index. total return up 40%. as we go into the holiday season and see the discounting pressure, who do you recommend for investors here? >> well, several different groups. we like walmart in the sense that walmart is on a self-realization path that we see that they understand what growth is for growth sake versus growth for return on investment driver over times.

we like walmart attitude shift and see this transition as part of that, auto parts are a group, if you're worried about retail performance at holiday, not a discretionary sector. weather's going to help. we've seen more vehicles miles traveled of late. we have some recommendations in that space as well. >> guys, thanks so much. an interesting week for sure. david and bud, talking walmart and weather as it related to retail. history made this weekend as u.s. signed a major deal with iran over its nuclear program. what happens next? we'll take a closer look at the economic and political impact in a moment. first, rick santelli, what are you watching today? >> we're going to stick with our theme of the day and that's spread relationships. this time, we're going to look at treasury complex versus the muni complex. two fixed income markets that deserve a lot of attention. look at munies through the prism of default and the wild card, long-term pension liabilities.

all with matt fabian in ten minutes. ♪ you get your coffee here. you get your hair cut here. you find that certain thing you were looking for here, but actually you get so much more. when you shop at these small local businesses, you support all the things that make your community great. the money you spend here, stays here. in this place you call your neighborhood. this saturday is small business saturday. get out and shop small. yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male announcer ] this december, experience the gift of unsurpassed craftsmanship at the lexus december to remember sales event. some of the best offers of the year.

this is the pursuit of perfection. [woman]ask me...

[announcer]...if you think the best bed for one of you might be a compromise for the other one... [woman]ask me about our tempur-pedic. [announcer] they're sleeping on the newest tempur-pedic bed... the new tempur choice... [man]two people.two remotes. [announcer] firmness settings for the head,legs,and back... and with tempur on top,that famous tempur-pedic comfort comes any way you like it! [woman]ask me about the lumbar button. [man]she's got her side...and i've got my side. [announcer] tempur-pedic.the most highly recommended bed in america. [woman]don't touch my side! >> dow's up 26. take a look at energy sector. dominic chu is back with more. >> when you get the drop in oil prices, energy stocks are always a focus. now that tensions in iran have eased for the time being, the worst performing stocks are in

the energy sector. bigger names in oil and gas leading the sector declines. new field exploration, down around 2% or more. even the oil field services companies are taking a hit as well, two of the world's biggest, down around 2% or more. energy focus but it's about upstream versus downstream. >> just mentioned iran, speaking of which, history made this weekend as iran and the u.s. reached a plaj agreememajor agr could pave a way for iran's nuclear program. what happens next? john harwood joins us live from washington. >> reporter: good morning. >> so first of all, i'm curious if we're overbilling this as a historic agreement while it indicates rhetoric has gotten to a better place, does the deal have that much significance? >> reporter: well it will have significance if we get a deal in six months. it all depends on that, kelly.

this deal in and of itself doesn't do that much. if t. gets a mild easing of sanctions for iran worth 5 billion 6 billion. for the united states it freezes plutonium. it's not going to dismantle their program that won't happen unless we get a bigger deal. the question is, do you think it's possible to noeegotiate wi iran and produce an agreement that will resolve the united states' concern about getting a nuclear weaponen? if you don't, the only other options military conflict, and that's a very difficult decision. the administration's going to try this. we'll see what path we're on after six months but it depends on the bigger deal. >> what's more difficult, verifying with the monitor, in this case, iran's activities, or trying to keep our own congress from imposing sanctions? >> reporter: verifying. i think the administration, because democrats control the

senate, there's a lot of noise on capitol hill, republicans being more aggressive and they mean to impede the president's policy. democrats are more likely to make noise and be the bad cop for the administration. but not seriously try to undercut what the president is doing. i think the real question is, can daily inspects and whatever inspections follows a broader agreement, can that get the job done? a lot of people skeptical. we saw the same divisions in the bush administration, dick cheney and condi rice on different sizes of the question, whether diplomacy could work here. the administration has not resolved those questions. they're giving diplomacy a trite tri. >> what does this mean for the prospect of israeli/palestinian talks and saudi arabia? >> both israel and saudi arabia have been slamming this deal, for different reasons. i think the israel/palestinian issue so difficult. john kerry's always understood

that that's a long shot possibility. but you have to hope that if an israeli/palestinian deal in the interest of interest can still be struck, it will be. but i don't think anybody's betting a whole lot of money on that. saudi arabia, i think, the administration realizes that they're upset about the idea of an accommodation with iran. but i think saudi arabia is l e likely to ultimately loive with it if we get a broader deal. >> john, thanks so much. john harwood in washington. wanted to to take a look at the deal on what it means for oil. sharon epperson at the nymex, we're still down. >> reporter: but not by nearly as much as we were earlier when the market opened last night. and as john harwood laid out clearly, there is a lot still left to be worked out to see when this deal will come to fruition and traders realizing that, and that's why perhaps we're looking at brent crude

prices $2 higher than lows in the overnight session. we are watching to see what will happen in terms of the fallout, what it means for the crude oil market. as we have the sanctions that are in place right now, that has reduced iran's exports from 2 1/2 million barrels per day to 1 million mper day. 1 million per day is a de facto increase in levels we've seen since october. october, iran was pumping out 715,000 barrels per day. we still have a little ways to go to get to the 1 million mark. that could put more oil on the market quickly, which could pressure prices. that is why we could see oil prices, brent crude prices at $90 barrel mark by the end of the year. others saying by next year, we could see 800,000 barrels per day on the market and see u.s. oil prices at $85 a barrel. we're continuing to look at

analysts putting out price predictions. it will be some time until we see iran, if ever, back to the levels that they from producing before the sanctions were in place. back to you. >> that's for sure. thanks very much. sharon epperson for us. oil isn't the only thing moving today. the dow, s&p, also hit fresh session highs early this morningen the ceo of principal global investors. he joins us now. good morning. >> good morning. >> i'm curious, you know, the shifting oil sands fit into your view when it comes to 2014, whether markets haven't hit another record high here, can continue to rally. >> i think so, kelly. i think that the improvement in the oil market is one of the reasons why i remain pretty optimistic about equities for 2014. there has been a significant military fear premium in the oil market and that has been keeping oil prices up whereas increasing supplies should be pushing them

down. so i would expect to see the premium on brent and actually the price of west texas intermediate both decline. that's frankly as good as a tax redux as far as u.s. and business are concerned. i think it reinforces my belief that the u.s. private sector remain quite strong and that will be the main driver of the u.s. equity market over the next 12 months. >> jim, a lot of discussion about how hard the shorts have had it this year. i think the average short fund, down 15% through october. do you think life gets any easier for them before year-end? >> not really, no, not yet. i think that people talk, for example, about the fed taper coming in and bailing out the shorts because it will cause a setback in the market. i think when the fed tapers -- and that's a matter of some time in the next three, four months most likely -- you'll see a short-term setback in the u.s.

equity market, 3%, 4 percent, it will doing well quickly. i don't think it will be joyful the shorts in the next six to 12 months, let alone the year. >> talking about the strength of the manhattan real estate market. what do you view real estate competing, stocks not comfortable at the highs or don't feel like the gain they can get in the market can be matched if he invest in the right way residential or commercial real estate. >> i think commercial real estate remains attractive. you know the unlevered value of quality u.s. commercial real estate fell about 50% in the crisis. and it's only got a little over half of that back. the rates are attractive, high 5, 5.5%, 6% yield.

i think commercial real estate remains quite attractive. residential real estate particularly new york has been strong. i think that's not going to hinder the equity market. a lot of the same money that flows into real estate is flowing into equities. and the fundamentals of equities remain very benign. i think it will continue flowing in. >> dow 20,000, that's what jeremy siegel said this morning, jim. >> i think next year could be a 10%, 20% year. i guess 20% gets you close to jeremy's number. >> true. >> i wouldn't be fevered about it, but 18,000, 19,000 looks doable next year, provided the negative surprises we all know about don't happen which i think on balance is the case. >> thank you very much for joining us and sharing your views on the market this morning. thanksgiving day coming up. holidays putting a major dent in one key area of the market this

week. [ tires screech ] ♪ [ male announcer ] 1.21 gigawatts. today, that's easy. ge is revolutionizing power. supercharging turbines with advanced hardware and innovative software. using data predictively to help power entire cities. so the turbines of today... will power us all... into the future.

♪

[ male announcer ] they are a glowing example of what it means to be the best. and at this special time of year, they shine even brighter. come to the winter event and get the mercedes-benz you've always wished for, now for an exceptional price. [ santa ] ho, ho, ho, ho! [ male announcer ] lease the 2014 e350 for $579 a month at your local mercedes-benz dealer.

i'm scott wapner with more information regarding the ceo change at walmart. mike duke out as of february 1st, doug mcmillon in. this according to a source familiar with walmart's thinking, describing two-to-me, mr. mcmillon as being perfect for the future of walmart. described also as a calm leader, saying that international is clearly of prime importance to walmart's future. while u.s. comps in the united states have been down for three quarters in a row, international business has been doing quite well. the source also describing it as a, quote, very positive move for walmart. investors are seem to be viewing it that way, the stock's up 3/4 of 1%.

reiterating, this decision did not happen overnight. succession being something that walmart talks about all the time and reiterating the fact this had nothing, according to my source to do with this fair practices investigation which has been hanging over walmart. that's the latest there. again, mostly more color on this gentleman who is coming in to lead walmart intoite next stage, a young man, doug mcmillon, described as being perfect for the future of walmart. we shall see. >> scott, thank you. municipal bond sales dropping. for more on the muni market, rick santelli in chicago. over to you. >> thanks, kelly. i'd like to welcome our guest, matt fabian, thanks for taking time this morning. >> hey, rick. for sure. >> listen, taxes are a big issue, and maybe one of the big reasons why many investors try

to dig through and pick out good issues in the muni market. you have an interesting chart that shows aaa munies versus treasuries, keeps with topic of spreads, and the spread has been narrowing. can you explain that to our audience and it me what, if anything, it may mean? >> historically, municipal yields on a nominal basis were lower than treasury yields. it really hasn't been the case through most of this year or last year because treasuries were so expensive. over the last few months, muni yields have dropped back below or in the last few weeks have dropped back below treasuries. we think it's a temporary thing. for the most part, people in the muni market are trying to quiet things down into the end of the year, a rough year for a lot of people. so you know, trying to sort of get through this year in one piece. and that has let muni yields,

munies vehaven't sold off in th last couple of weeks. >> we think of mun, people think of oakland, california, philippines are potentially, in the end, as horrible as all of those things are, i don't mean to make light there may be lots of opportunities. tell us about what the faults have been doing. i'd like to throw up a chart. >> defaults have been coming way down this year. this is the first year where it looks surely we're going to have less than 100 new bonds defaulting this year. these are payment defaults, credits defaulting for the first time. for the most part, small, special districts, nursing home, charter schools. overallstate revenues are getting better, local revenues getting better or stabilizing. the big situations that we know about, detroit, stockton, san bernardino, others, they're still getting resolved and there

isn't a new group of distressed credits coming in. it seems like, at least from my perspective, going forward 2014, 2015, the issue of municipal defaults should be a smaller -- it should have smaller importance. people should be less focused on muni defaults going forward. >> thank you the wild card in my mind long-term pension liabilities though states and munies are cleaning up their balance sheets, that blemish seems to be getting worse. >> a new read on the economy. the same people who bring you the monthly manufacturing numbers are releasing new data on the $9.7 trillion services sector today. we'll tell you what the numbers tell us about the economy. bell's about to sound across europe. we'll get that close in a few minutes. [ male announcer ] this store knows how to handle a saturday crowd. ♪

[ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. [ female announcer ] toi see a world burstingng with ideas, with ambition.ing. i'm thinking about china, brazil, india. the world's a big place. i want to be a part of it. ishares international etfs. access to developed markets, emerging markets and single countries. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. became big business overnight? ♪

like, really big... then expanded? ♪ or their new product tanked? ♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade.

the european markets are closing now. >> welcome back. the european session, a pretty strong one. >> yes. the dax hit another record high today. the iranian deal over the weekend is bigger for corporate europe than corporate u.s. because so many more of those companies will attempt to play in the middle east, in iran in particular. the knee-jerk reaction seeing oil falling buy airlines. it's a proxy trade. airlines are higher, ica, which i keep tell you is british

airway's parent to iberia. automotive plays in iran in a major way, they are rebounded. into the pedid peugeot. a stronger bounce there. the other sector, international dialysis plays. dom's talking about this. friday we learned that the overall dispersement for kidney dialysis will be unchanged next year. in july talking about a fall of 9.4% i think the figure. a big, strong relief rally there. before i hand you back, one more from my good friend and colleague, kelly evans, this brings us antarctica. prince harry started his trek across antarctica, honored to be walking with 12 injured servicemen and women, three teams competing for the military charity. expected to reach the north pole

by the middle of december. the weather here more challenging than that. >> that is so true. thank you, simon. >> it's not bad we have a problem. we have a major problem. but we will see. the weather hasn't happened yet. mary thompson, see what's moving at big board. >> markets continue to hold on to modest gains, energy is a lagging sector today as oil prices are pulled back on this iran deal, as the country looks -- it has looked to curb its nuclear program. that's put pressure on oil, down 85 cents. some oil stocks come off their lows, exxon mobil moving to the upside. today nasdaq hit its best levels in ten years, moving above the 4,000 mark. still at six points seeing weakness in big name nasdaq stocks including facebook and nuance and ebay. qualcomm under pressure as well as price regulators looking into

the maker of chips used in cell phones. it's down 1.3%. want to focus on dow components. caterpillar's the worst-performing dow component ov the last year. today it's the best performing dow component of the 30-member index after bank of america raised its rating on the company, expecting a strong performance this year. the worst performer in the dow today is boeing the best performer for the year. the company warning some problems with ge engines in its dreamliner and new 747s. i spoke with ge, they said the problem with these engines will be fixed. what they need to do is change software that will open doors at front of the engines to basically break off ice that is forming at high altitudes and caused in six incidents some of the engines to lose thrust for two or three seconds. there hasn't been any issue with landing, but they expect the

software glitch fixed or the software to be fixed and the problem fixed in the first quarter or early next year. both dow components under pressure. you heard simon mention positive news for kidney dialysis companies, helping to drive the health care sector higher with continued gains in biotech we've been seeing over the last couple of weeks. again, energy is the laggard. we want to touch on home builders. pending home sales for the month of october down for the fifth straight month. home builders down as well. back to you. >> thank you, mary. new pmi index is launching today. the same people who bring the monthly manufacturing data will begin releasing a read for 9.7 trillion u.s. services sector. yes, the first flash u.s. service pmi released this morning. it indicates strong increase or rebound in business activity following a sharp drop in october that was linked to the government shutdown. joined by chris william,

releases the pmi data. i hope we explained that. the ism has long done this manufacturing survey for the u.s. first day of the month, highly followed, highly influential. you not only mimic the manufacturing side but the services piece as well. >> yeah. in fact, back in '96 we were the first organization in the world to do a nonmanufacturing pmi. we worked with bank of england on developing one for the uk. we rolled that out to lots of countries. now also for the u.s. it's an exciting time for us. this is the missing piece in the pmi puzzle. >> any challenges in collecting of surveys as opposed to manufacturing survey. >> so many different apples and pears in the sector. it's not like manufacturing where you can count the widgets, so burgers and banking sector, it's difficult to get a questionnaire that suits

everyone. we've got a very good methodology. the indicators in the uk and eurozone watched closely by the central banks. the key indicator they're using policy making, it's huge. in the u.s. manufacturing is 12%. so it's a huge part of the economy that needs to be monitored. >> manufacturing punches above its weight in terms of 0 market gauge and that's why traders follow it so closely. but as you say, talking about employment, it's services. go through some of the numbers. employment category, despite activity, bouncing back, weakened. >> it did weaken but it has been strong. you can run a comparison of this data against the nonfarm payroll data. we've been collecting numbers since 2009. what we were showing running around 200,000 increase in nonfarm payrolls in prior months. that's weakened now to around

160,000, 170,000. still strong, but it is showing signs of waning. some might be to do with uncertainty created by the shutdown, for example. so let's see next month if it bounces back again. nevertheless, showing strong rezr resilience and hiring. backlogs of work, strong readings suggesting there are orders there, they may still recruit. >> you're the earliest available indicator on services out there. where's the line between being first, being early, not subject to too much revision down the road? >> we don't revise the numbers with the exception of the flash data, so the beginning of the month we'll publish final numbers. what we know in countries like china, eurozone, there's a small difference. key thing is to get numbers out there early. it's just so important for policymakers to know what's happening now. >> all the more so, speaking of

the shutdown, that changed data. we didn't have it for a while, there were effects that came through the official report. your survey would allow for some data collection outside government agencies? >> absolutely. it's like health check on the numbers as well. nonfarm payrolls i almost wish we had come out a month earlier. we had a 200,000 rise and consensus was 125 for october but we were back on the money. it's not a health check on the official data as well as being early. >> still do 9:00 a.m.? >> it's great real estate. we go on the air but the federal data's at 8:30, other data's at 10:00. you've got nice space to wedge. >> yes. it will be 9:00. we like that time. >> perfect. it did rebound this month, 57.1. chris williamson joining us. congratulations as well. >> thank you very much. >> back to dominic chu, a marfl.

>> some investors are never satisfied. lionsgate, shares falling 8.5% after "catching fire" failed to meet sky high expectations of box office forecasters. sequel netted $161 million in u.s. and canada, but it wasn't enough for some wall street investors. i haven't seen it yet but i'll try to see it at some point. >> i saw it friday. loved it. i wondered if some of the weather here is impacting names where people have to leave their house in the northeast this weekend. you have to ask the question. >> too cold to go outside. i stayed inside. >> thanks, dom. and auction over at sotheby's over the weekend brought in serious cash for apple products. ge golden ear buds $461,000. we'll bring you the price on other products like this storm trooper helmet after the break.

with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. wow...look at you. i've always tried to give it my best shot. these days i'm living with a higher risk of stroke due to afib, a type of irregular heartbeat, not caused by a heart valve problem. at first, i took warfarin, but i wondered, "could i up my game?" my doctor told me about eliquis. and three important reasons to take eliquis instead.

one, in a clinical trial, eliquis was proven to reduce the risk of stroke better than warfarin. two, eliquis had less major bleeding than warfarin. and three... unlike warfarin, there's no routine blood testing. [ male announcer ] don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take eliquis if you have an artificial heart valve or abnormal bleeding. while taking eliquis, you may bruise more easily and it may take longer than usual for any bleeding to stop. seek immediate medical care for sudden signs of bleeding, like unusual bruising. eliquis may increase your bleeding risk if you take certain medicines. tell your doctor about all planned medical or dental procedures. i've got three important reasons to up my game with eliquis. [ male announcer ] ask your doctor today if eliquis is right for you. yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to.

is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. coming up top of the hour, how high can we go. >> stock on pace for the best year since '97. one market expert says they're still cheap at these levels. surprising change in walmart. stocks doing well today. how should you play it?

what other retailer should you look at today as well? new low for twitter a few days before the quiet period ends. top analyst here where shares go from here. straight ahead top of the hour. >> nice to see the tie went on. >> running around. apple's on the auction block over the weekend. senior vice president of design teamed up with mark newson for a red themmed auction. a star wars storm trooper helmet to a red mac pro that sold for nearly $1 million. jon fortt joins us at post 9. i like the helmet, signed by lucas, that gets your attention there. >> for a quarter million, that could have been yours. >> maybe next year. >> tie totally overrated. some of the other stuff that they had for this, of course, product red is bono's brainchild, apple supported it for a long timing. trying to solve problems, aids,

malaria, tu beberculosis overse. 461,000 as you mentioned for the gold ear buds. the half -- the quarter million for the storm trooper helmet. a piano for nearly $2 million that chris martin from coldplay played at auction. he's popped up at some apple events before. there was a table, $1.7 million for the table. it's a nice table. a metal table. but a table. tim cook showed up for the auction, right, star power. and steve jobs' widow came out. >> isn't that telling the star was johnny ives? it's a different culture when the star and ceo were steve jobs. is that a good thing to separate that out, johnny ive is his own to create the products that he thinks need to be out there. >> think about it, 100 years

from now when people think about the significance of apple, johnny ives is going to operate in his own sphere historically as the brains behind this, the guy who was there at apple, languishing in the basement when steve jobs came back and elevated his talent in a way that allowed apple to achieve much of what it did. also got to point out the auction raised $26 million. part of the reason why was bill and melinda gates doubled the amount that the auction raised onnite own. on its own $13 million. bono called that bipartisanship because bill and melinda helping out johnny ive. >> to make any public appearance, it's rare to hear from him in a public sphere. >> your take on yahoo! katie couric what it means for the future of that company, whether whether they're a tech company or media company. people having that debate.

>> video, very important to yahoo! right now. i think from a financial perspective, just the idea that they're going to be bringing in big ticket video, they haven't been able to get enough to sell, that's a plus. whether katie couric is the right person, as a guest talked about traditional anchor, that remains to be seen. but a lot of yahoo!'s audience now is that older demo that would resonate with a katie couric, maybe trying to boost the engagement in their core audience, they'll have other stuff on mobile to pull in the younger audience. tumbler is a big part. >> we haven't heard much from tumbler since the acquisition, in terms of the strategy. that is because they're working on something how they run the company? >> it's a sign of how they want to run it. as marisa told you they want to run it independently, not mess with it. it's a good thing we're not hearing about too much.

>> your interview last week, new york-based tech, that's where it's going, very quickly. jon fortt. >> it's one of the hottest exercise start ups in years. soul cycle. they're not cheap classes. knows how to turn customers into die-hard fans. can the chain expand without spinning out of control? we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

i have obligations. cute tobligations, but obligations.g. i need to rethink the core of my portfolio. what i really need is sleep. introducing the ishares core, building blocks for the heart of your portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.

it is a fitness craze that has led to a fitness empire across the country between 5,000 and 6,000 people every day are flocking to soulcycle for indoor cycling sweat fests, described as the hardest workout ever combined with dance club euphoria. joined by the soulcycle co-founders, julie rice and elizabeth cutler. i got this idea to have you on from a neighbor of mine on his way to the second session of the day. whoever invented this, i'd like to know who they are. it hasn't been that long. >> we started in 2006. today we have almost 25 studios. >> what was the original concept? s that changed since you sold? what did you have first in mind?

the original concept of soulcycle is the same as it always was, we were looking for an exercise that just didn't exist. we were looking for something that was fun, transformative, and efficient, and those three didn't seem to be combined in one exercise at the time. >> it's crazy to be me, these classes are not cheap. it's, what, $40 sometimes -- >> $34. >> so it's interesting that there's such demand for people to spend either $34 session or some of the bikes that you're selling for upwards $2,000. who is driving this demand? >> people value what they pay for. we joke, what can you drink in 45 minutes if you're committed to it? if you take that 45 minutes and bring it in that classroom, you will see a huge difference in your body, you'll see huge difference in your mind and that's what keeps people coming back, they don't just come for the physical, they come for the meantle. >> one big frustration, among clients trying to get a session, right? i hear from people who are on their computer at noon, trying to get a time with their favorite trainer. it very difficult.

have you had to resist the semtation to expand faster than you'd like? >> our whole model is based on experience. we want to make sure we deliver the experience that we want people to have. julie and i have always used the business, because we're the users and we love to do every day. people that we work with love to do it every day. we want to make sure that people who are using it are getting the experience that we want them to have. we feel like that allows us to do 15 a year. >> choosing expansion points, how do you determine where it's going to play well, right? silicon valley, manhattan are one thing. peoria and berlin something entirely different. >> in the beginning we thought urban centers were the place for soulcycle. today we receive hundred of requests every month from places you wouldn't believe. so we believe it's a human experience to experience joy through exercise, to feel healthier and stronger as your body and mind release stress and get stronger. we believe that the potential is way greater than we thought in the beginning.

we definitely plan on creating another 20 next year, which will bring us to 45. we definitely have 100 planned between united states and internationally. and who knows what's beyond that. we're also planning on bringing digital experience to people's homes really soon. >> how big are you going to be ultimately? you may not have something specific in mind, but what's the vision now? how are you funding all of this? is it from current profits? do you have backers? thinking of tapping public markets at some point? >> it's a combination. we do -- we have a partner in equinox, we did a strategic partership two years ago. they are helping us expand. we are leaning on them for some resources and some capital and that's all going great. but we have a big vision for soulcycle. we see the potential of soulcycle going all over the world. we have no ceiling that we've put on ourselves at this point. >> ex-question next owned by

relate one of biggest developers in the world. how much of a plus, having a partner who real estate, one of the toughest things in retail what they do? >> we've been very fortunate to have done that partnership with them a couple of years ago. it's exciting for us. we can leverage some resources and remain true to the brand and allow the individual experience of a boutique fitness soulcycle to happen on these corners and different markets. >> we are showing celebrities at your classes. do they get to jump the line? do they get preferential treatment? >> everyone's equal at soulcycle. >> right. >> even's equal. >> everyone's sanctuary. >> they're on the computers, too. >> there's andy, andy cohen. there's costello. no special treatment. >> just as nice to them as we are to everybody that comes to soulcycle. >> you know what? for a lot of our entrepreneurs watching, it's an inspiring story. it's nice to meet you guys. we'll be watching you close.

>> i thank you. >> appreciate it. >> over to dominic chu a quick market flash for us. >> check out what's happening with sears holdings, off of its highs. parent company of sears and kmart denying market rumors it's exploring a sale of its canadian unit. company reported weaker than expected third quarter earnings last week. still those shares on the move because of the possible, possible rumblings around the canadian unit. >> black friday almost upon us. why wait until then? amazon launching its deals today and updating every ten minutes. some of the best we've seen so far, when we come back. (vo) you are a business pro.

maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. ♪ ♪

you get your coffee here. you get your hair cut here. you find that certain thing you were looking for here, but actually you get so much more. when you shop at these small local businesses, you support all the things that make your community great. the money you spend here, stays here. in this place you call your neighborhood. this saturday is small business saturday. get out and shop small. they always have. they always will. that's why you take charge of your future. your retirement. ♪ ameriprise advisors can help you like they've helped millions of others. listening, planning, working one on one. to help you retire your way... with confidence.

that's what ameriprise financial does. that's what they can do with you. ameriprise financial. more within reach. welcome back. amazon beating everyone to the punch, launching black friday deals today. updating new products, get this, every ten minutes. here are some of the deals. 35% off samsung's galaxy 3, 770 off nokia lumia 710. 20% off windows 8 laptops. 43% off crocs kids.

>> when you have kids they want the ford mustang, it has pickup. they move. >> the ones kids drive or play with? >> yes, yes, begging for one. >> i'm still working on my gift for you. >> cannot wait. i'm going to get you that hat, george lucas. >> back to headquarters. scott wapner and the halftime. >> what we're following today, twitter countdown with the quiet period ending in four days, where will the stock head from here? ask top analyst bob peck. retail stunners, walmart leaving, target's website changing. we begin with stocks on pace now for their best year since '97. the momentum is continuing. latest milestone, nasdaq topping 4,000 for the first time since the year 2000. it's halftime. play the action. joe terranova start us off. setting up well for a run between now and end of the